Zarlink Semiconductor Inc.
TSX : ZL

Zarlink Semiconductor Inc.

April 14, 2009 10:18 ET

Zarlink Introduces Industry's Lowest Power Solution Enabling High-Quality Voice Service Over Broadband Networks

New VE8820 chipset helps manufacturers design Voice-over-IP (VoIP) equipment that meets environmental and operating cost concerns from service providers

OTTAWA, CANADA--(Marketwire - April 14, 2009) - Zarlink Semiconductor Inc. (TSX:ZL) today expanded its market-leading VE880 VoicePort™ Series of VoIP-enabled devices, with a new chipset that allows manufacturers to meet power, performance and cost requirements for equipment supporting high-quality voice service over broadband networks.

Consuming 50 percent less power than competing devices, the dual channel VE8820 chipset is the industry's most efficient approach to enable voice-over-broadband applications. The chipset's extremely low power requirements help equipment manufacturers more easily comply with emerging "green" environmental standards, such as strict energy consumption limits for broadband equipment outlined in the European Code of Conduct. In addition, the VE8820 chipset's low power performance ensures uninterrupted voice service in battery-backed systems in the event of a power outage.

"Zarlink's voice telephony products address the unique concerns of both service providers and manufacturers," said Jacques Issa, Director of VoIP Marketing and Applications with Zarlink's Communication Products Group. "The VE8820 chipset's integrated remote line diagnostic capabilities allow service providers to slash operating costs, by centrally identifying and quickly resolving customer issues to minimize costly truck rolls. For manufacturers, compared with competing devices the highly integrated, low-power chipset helps reduce bill-of-material costs and eases the design of equipment that meets new environmental requirements."

Zarlink is a leading supplier of voice telephony integrated circuits (ICs). Equipment manufacturers are designing the VE8820 dual channel FXS chipset into a range of voice-over-broadband residential and business gateways as well as access network applications, including cable embedded multimedia terminal adaptors (EMTAs), xDSL integrated access devices (IADs) and fiber to the home (FTTH) optical network terminals (ONTs).

Enabling the highest performance and quality voice

The highly programmable dual channel VE8820 chipset supports both wideband and narrowband telephony operation, and is software compatible with existing VE880 VoicePort Series devices. The product is supported by the VoicePath API-II Software Development Kit to help simplify design, speed product development and enable improved telephone line testing capability through the field proven VeriVoice Test Suite software.

The VE880 chipset is in full production, for more information please visit http://www.zarlink.com/zarlink/hs/82_VE8820.htm.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

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